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Numeric .xyz names plummet despite dollar deal

Kevin Murphy, December 7, 2017, Domain Registries

XYZ.com’s effort to sell over a billion numeric .xyz domains at just $0.65 each does not appear to be gaining traction.

The number of qualifying domains in the .xyz zone file has plummeted by almost 200,000 since the deal was introduced and dipped by over 4,000 since the blanket discount went live.

The $0.65 registry fee applies to what XYZ calls the “1.111B Class” of domains — all 1.111 billion possible six, seven, eight and nine-digit numeric .xyz domains.

These domains carry a recommended retail price of $0.99.

It’s not a promotional price. It’s permanent and also applies to renewals.

Some registrars opted to start offering the lower price from June 1, but it did not come into effect automatically for all .xyz registrars until November 11

The number of domains in this class seems to be on a downward trend, regardless.

There were 272,589 such domains May 31, according to my analysis of .xyz zone files, but that was down to 74,864 on December 5.

On November 10, the day before the pricing became uniform, there were 78,256 such domains. That shows a decline of over 4,000 domains over the last four weeks.

It’s possible that the 1.111B offer is attracting registrants, but that their positive impact on the numbers is being drowned out by unrelated negative factors.

The period of the 200,000-name decline coincides with the massive mid-July junk drop, in which .xyz lost over half of its total active domains due to the expiration of domains registered for just a penny or two in mid-2015.

Many of those penny domains were numeric, due to interest from speculators from China, where such names have currency.

The period also coincides with a time in which XYZ was prohibited from selling via Chinese registrars, due to a problem changing its Real Names Verification provider.

In recent marketing, XYZ has highlighted some interesting uses of 1.111B domains, including a partnership with blockchain cryptocurrency Ethereum.

Other registrants are using the domains to match important dates and autonomous system numbers.

ICANN urged to crack down on new gTLD abuse

Kevin Murphy, November 29, 2017, Domain Registries

Registries selling dirt-cheap new gTLD domains should be rewarded with lower ICANN fees when they get proactive about abuse, while registrars that turn a blind eye to spammers should be suspended, an ICANN working group will recommend.

In its second batch of findings, the Competition, Consumer Trust, and Consumer Choice Review Team (CCT) said that financial incentives and a new complaints procedure should be used to persuade registries and registrars to fight DNS abuse.

The CCT said it “proposes the development of incentives to reward best practices preventing technical DNS abuse and strengthening the consequences for culpable or complacent conduits of technical DNS abuse” in a paper published today.

The review, which drew on multiple sources of market and abuse data, original research, and analysis of third-party research, is probably the most comprehensive study into the impact of the new gTLD program to date.

It concluded that overall rates of DNS abuse did not increase as a result of the program, but that bad actors are increasingly migrating away from legacy gTLDs such as .com to 2012-round TLDs such as .top, .gdn and Famous Four Media’s stable.

Indeed, much of the paper appears to be a veiled critique of FFM’s practices.

The registrar AlpNames, known to be affiliated with FFM and responsible for most of its retail sales, is singled out as the currently accredited registrar particularly favored by abusers.

The CCT report notes that AlpNames regularly sells domains for under $1, or gives them away for free, and offered a tool allowing registrants to randomly generate up to 2,000 available domains in 27 different gTLDs, pretty much inviting abuse.

“Certain registries and registrars appear to either positively encourage or at the very least willfully ignore DNS abuse. Such behavior needs to be identified rapidly and action
must be taken by ICANN compliance as deemed necessary,” the paper says.

The review found that gTLDs with no registration restrictions and the lowest prices had the most abuse. Duh.

“Generally, the DNS Abuse Study indicates that the introduction of new gTLDs did not increase the total amount of abuse for all gTLDs,” its report says. “[F]actors such as registration restrictions, price, and registrar-specific practices seem more likely to affect abuse rates.”

Drawing on data provided by 11 domain block-lists (SURBL, SpamHaus, etc), the paper states that at least one TLD (FFM’s .science) had an abuse rate excess of 50%.

Using SpamHaus data, the paper identities FFM’s .science, .stream, .trade, .review, .download and .accountant as having over 10% abuse during the period of its study. Also on that list: Uniregistry’s low-price .click and the China-based .top and .gdn.

One thing they all have in common is that AlpNames is a leading registrar, usually accounting for at least a quarter of domains under management.

There’s no way AlpNames/FFM is not aware of the amount of bad actors in its customer base, the question is what can ICANN do about it?

The CCT team recommends that registries and registrars with over 10% of their names used for abusive purposes should be tasked by ICANN with proactively cleaning up their zones. Those that fail to do so should be subject to a new Domain Abuse Dispute Resolution Process, it said.

These companies should have their contracts suspended when they’re “associated with unabated, abnormal and extremely high rates of technical abuse”, the report recommends.

There’s a big boilerplate specifying, tellingly, that registry operators that control registrars are affected by this recommendation too.

It should be noted that there was not a full consensus of support for the idea of a DADRP. Half a dozen working group members filed minority statements opposing it.

It’s not all stick in the report, however. There’s some carrot, too.

The CCT report recommends financial incentives such as fee reductions for registries that have “proactive anti-abuse measures” in place.

It noted that there is precedent for ICANN doing this kind of thing when it implemented an anti-tasting policy that seriously restricted registrars’ ability to get registry refunds.

The CCT Review Team was formed to figure out what impacts the 2012 new gTLD round had on the domain name market.

The completion of its work is one of several gating factors to the next new gTLD application round under ICANN’s new bylaws and the old Affirmation of Commitments with the US government.

It published initial recommendations earlier this year. This new set of recommendations is now open for public comment until January 8.

China and cheapo TLDs drag down industry growth — CENTR

Kevin Murphy, November 27, 2017, Domain Registries

The growth of the worldwide domain industry continued to slow in the third quarter, according to data out today from CENTR.

There were 311.1 million registered domains across over 1,500 TLDs at the end of September, according to the report, 0.7% year-over-year growth.

CENTRThe new gTLD segment, which experienced a 7.2% decline to 20.6 million names, was the biggest drag.

But that decline is largely due to just two high-volume, low-price gTLDs — .xyz and .top — which lost millions of names that had been registered for pennies apiece.

Excluding these TLDs, year-over-year growth for the whole industry would have been 2.5%, CENTR said. The report states:

Over the past 2 years, quarterly growth rates have been decreasing since peaks in early 2016. The slowdown is the result of deletes after a period of increased investment from Chinese registrants. Other explanations to the slowdown are specific TLDs, such as .xyz and .top, which have contracted significantly.

The legacy gTLDs inched up by 0.2%, largely driven by almost two million net new names in .com. In fact, only five of the 17 legacy gTLDs experienced any growth at all, CENTR said.

In the world of European ccTLDs, the average (median) growth rate has been flat, but CENTR says it sees signs of a turnaround.

CENTR is the Council of European National Top-Level Domain Registries. Its Q3 report can be downloaded here (pdf).

CentralNic and .CLUB reveal premium sales

Kevin Murphy, November 8, 2017, Domain Services

CentralNic and .CLUB Domains have both revealed sales of premium domain names over the last several days.

CentralNic said yesterday that it has sold “a number” of premiums for $3.4 million.

The names are believed to be from its own portfolio, rather than registry-reserved names in any of the TLDs it manages. The company did not disclose which names, in which TLDs, it had sold.

The sale smooths out potential lumpiness in CentralNic’s revenue, and the company noted that the sales means that recurring revenue from its registrar and registry business will become an increasing proportion of its revenue as its premium portfolio diminishes.

Last week, .CLUB announced that it sold $380,793 of premium .club domains in the third quarter. That was spread over 452 domains.

The big-ticket domains were porn.club and basketball.club, sold by the registry for $85,000 together.

The Q3 headline number was a sharp decline from the Q2 spike of $2.7 million, which was boosted by auctions in China.

The company published a lot more data on its sales on its blog, here.

Eight more gTLDs get Chinese licenses

Kevin Murphy, October 12, 2017, Domain Registries

Radix and MMX have had four new gTLDs each approved for use in China.

MMX has had .work, .law, .beer and .购物 (Chinese for “shopping”) approved by the Ministry of Industry and Information Technology.

Radix gained approval for .fun, .online, .store and .tech.

The approvals mean that Chinese customers of Chinese registrars will be able to actually use domains in these TLDs rather than just registering them and leaving them barren.

It also means the respective registries have to apply more stringent controls on Chinese registrants.

They’re the first new gTLDs to get the nod from MIIT since April.

Only a couple dozen Latin-script new gTLDs have been given regulatory approval to operate fully in China.

MMX’s biggest success story to date, .vip, is almost entirely beholden to the Chinese market. Before today, it was also the only gTLD in its portfolio to pass the MIIT test.

The company said in a statement it has another four strings going through the approval process.

Radix already had .site on sale in China with government approval.